UK car and automotive news and reviews
 

Toyota calls for scrappage extension

Toyota LogoJapanese car manufacturer Toyota has welcomed the £2,000 scrappage scheme incentive but the plan needs to be extended beyond the March 2010 deadline, when its £300m funding runs out.  Senior vice president of sales and marketing at Toyota Motor Europe Thierry Dombreval said “It’s got to be longer, natural demand for cars is not going to come back in 2010.”

Toyota has already cut pay and working hours in its UK factories by 10%, taking effect from 1st April for one year.  The cuts affect 4,500 staff at plants in Burnaston, Derby, and Deeside, Flintshire.  Toyota said the measures would allow the company to “maintain employment in this difficult period”.

Mr Dombreval said that it could take five years “at a vigorous rate of growth” to return to the 21m cars sold across Europe and in Russia in 2007.  “Underlying demand is so low that it helps for incentives to be in place for a longer period of time,” added Mr Dombreval.

Toyota estimates that the overall UK car market shrank twenty seven per cent on a year ago last month. April vehicle registration data are due to be published later this week.  Mr Dombreval said that it could take five years “at a vigorous rate of growth” to return to the 21m cars sold across Europe and in Russia in 2007.

Some car industry analysts argue that keeping the scheme in place for an extended period. Spain has had a scrappage plan in place since January 2008, but vehicle sales there are down by about half year on year.  Car manufacturers are unhappy with the government’s requirement that they contribute up to half the £2,000-per-vehicle bonus themselves. Germany’s government funds the full bonus itself, which some manufacturers are matching in full.

Britain’s biggest carmaker Nissan, is trying to encourage trade-ins of old cars for its UK-built models by offering to subsidise trade-ins of eight-year-old cars itself.  The government scheme applies only to cars 10 years or older.

Be Sociable, Share!

Related posts:

  1. Hyundai wins on UK scrappage sales
  2. Worldwide Scrappage Scheme Update
  3. Scrappage manufacturer roundup – who’s offering what, on which cars

Leave a Reply

&nbsb;